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  • NZD/USD holds 0.7300 despite previous pullback from April 2018 high.
  • US Vice President-elect Kamala Harris may need to cast her tie-breaking vote as Democrats are near to gain Senate control.
  • Trump urges supporters to leave Capitol Hill, policymakers prepare for Senate proceedings but not in the old venue.
  • Aussie trade numbers and US ISM Services PMI can entertain traders but US politics will be the key to watch.

NZD/USD wavers around a 33-month high while flashing the 0.7300 threshold during the initial Asian trading on Thursday. The kiwi pair refreshed multi-month peak before a few hours as global markets cheered broad US dollar selloff amid victory of Democrats in Georgian elections and the drama in the Capitol Hill afterward.

While it was almost clear that US Vice President-elect Kamala Harris will enable the Democrats to rule in the Senate, a mob of US President Donald Trump’s supporters rocked Capitol Hill and forced policymakers to evacuate the building. Although Trump tried to placate them, while also terming the elections as stolen, policymakers criticize such a move and are likely preparing for President Trump’s impeachment.

Read: Breaking: NBC and CBS projects Democrat Jon Ossoff to win Senate runoff race in Georgia

Given Jon Ossoff’s victory, as projected by CBS and NBC, market players will look to how the policymakers will break the tie as they’re determined to work tonight even as the protests forced them to leave Capitol Hill.

On the other hand, the National Health Services (NHS) England briefing leak spotted by the UK’s HSJ suggests London will be overwhelmed by covid in a fortnight. Further, noise against China gains momentum amid chatters over Beijing’s reluctance to cooperate on the coronavirus (COVID-19) trace investigations and multiple arrests of Hong Kong activists.

While qualitative catalysts are in the driver’s seat and entertain markets the most, the US dollar remained pressured near March 2018 lows even as most Wall Street benchmarks rallied by the end of Wednesday’s trading. In doing so, traders pair a little heed to the US Federal Open Market Committee (FOMC) minutes and a surprise drop in the ADP Employment Change.

Looking forward, Aussie trade numbers for November, US ISM Services PMI for December and global ire against China can offer intermediate direction to NZD/USD as Australia and China are New Zealand’s biggest trading partner. However, updates from the US will be important to watch.

Technical analysis

A sustained break of a one-month-old ascending trend line, at 0.7274 now, NZD/USD is up for challenging April 2018 top surrounding 0.7400.